Compound Interest and Rule of 72

Compound Interest is basically the interest that is added onto the original principal, but also on the interest that has accumulated over time on the principal. So as it was stated, it is the interest on the interest. If there is an interest over a frequent period of time the more accumulated interest will create additional interest. The Rule of 72 shows the growth of a compound interest. The rule of 72 is a formula that can tell you how long it would take to get a certain amount you are aiming for, what percentage of interest you would need if you were to have a time limit and what the outcome of your money would be when you calculate the interest rate and the time.